There are around 880,000 eligible pensioners who do not receive pension credit and will consequently be cut off from the winter fuel payment.
Fiona Waters, a spokesperson for the Warm this Winter campaign, said: “This price hike is yet another blow to the 6.5 million in fuel poverty who, like every other bill payer in the UK, are still forking out 65% more than they did for their energy than at the start of the crisis.”
The End Fuel Poverty Coalition estimates that energy companies have more than £470bn in profits since 2020.
“There is money in the system but that is going to energy bosses and their shareholders when it needs to go to ordinary people,” Waters added.
“The government’s policies on renewables and energy efficiency are needed to mend this broken system but we also need help now to get everyone of all ages through the winter ahead.”
Labour has promised to make the UK a “clean energy superpower”, with cheaper renewable energy and its Warm Homes Plan – investing an extra £6.6bn over the next parliament to upgrade five million homes to cut bills for families.
But although this plan has been welcomed, campaigners fear it will not come soon enough as energy bills are set to rise and millions of households are struggling.
“The public need to see a clear timetable for when the very real benefits of cheaper renewable energy and the Warm Homes Plan will kick in,” Simon Francis, the coordinator of the End Fuel Poverty Coalition, said.
The coalition is also calling for the government to end energy debt, extend the household support fund, expand warm home discounts and evolve standing charges to mitigate the impact of high bills.
“The government needs to come up with a plan to prevent even more households entering fuel poverty this winter,” Francis added.
Households are facing increasing levels of energy debt. Charity StepChange reports that the average amount of energy debt per client has risen by 29% year on year, from £1,679 in the first half of 2023 to £2,260 in the first half of 2024.
British households have built up debts of £3bn with electricity and gas suppliers, according to Ofgem.
Richard Lane, chief client officer at StepChange, said a “rise in the price cap may tip struggling households deeper into debt“, while urging the new government to introduce targeted support for people who are struggling.
“Too many households are facing fragile budgets, in which even slight rises in the cost of utilities will push them into the red,” Lane added.
Matthew Cole, the head of the Fuel Bank Foundation, pointed out that while energy bill costs have eased, they are still far higher than they were ahead of the cost of living crisis.
“There’s almost acceptance now that energy bills are much more expensive, but income hasn’t kept pace,” he said.
The Fuel Bank Foundation, which provides financial support to people facing fuel poverty, is expecting demand to soar over the winter months.
“There are people who are severely rationing, going two days at the end of the month for instance when they’re going without energy completely,” Cole said. “That has an immediate impact on people’s mental wellbeing and their ability to cope.
“And then you see kind of those longer, really sad, physical impacts of people living in crisis. If you’ve got a weak chest, or breathing difficulties or asthma, they particularly get worse as you live in a cold home.”
Charities have expressed concern for vulnerable people, including the elderly and disabled people, who are more likely to have higher energy bills for health reasons.
Richard Kramer, chief executive of national disability charity Sense, said that Ofgem’s increase in the energy price cap will be “alarming for disabled households, who face unavoidable extra energy use for essential equipment such as powered chairs and feeding machines”.
“This is a stark reminder that the cost of living crisis is far from over, and disabled households still need extra support,” Kramer said, calling on the government to implement a social energy tariff to help disabled and vulnerable people afford their energy bills.
“Disabled people cannot be left waiting any longer for targeted help with their energy bills.”
James Taylor, executive director at disability equality charity Scope, agreed. He said: “After three years of sky-high energy bills, this further hike will be disastrous for disabled households.”
Scope estimates that disabled people face extra costs of £975 every month for the essentials they need to survive each month, including on energy. The charity has heard from disabled people who are rationing their food use or going without food.
“For disabled people who rely on electrical equipment to help them breathe, this is a cost of breathing crisis,” Taylor said.
“Disabled households are now beyond breaking point, they have cut back everything they can and been pushed into debt. The government must intervene and bring in discounted bills for disabled households.”
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